I am recommending we close our bull put spread on The Trade Desk (TTD) at breakeven rather than risk holding a position in this volatile stock though tomorrow’s Federal Reserve announcement. Unfortunately, I think there is still too much optimism baked into the market and that we are likely to see a downside reversal.
Current Stock Price: $53.70
Cash in Hand: $0.40
- Buy to close the TTD Nov Week One (11/4) 50 Put for around $0.44
- Sell to close the TTD Nov Week One (11/4) 45 Put for around $0.04
- Set initial debit limit at $0.40, but adjust as needed to close today
Profit: $0, or $0 per spread